A Single Source Of Truth
Companies need to unlock working capital for growth. Receivables finance is one way to do this and a useful vehicle to support economic recovery.
Aided with the right risk management and due diligence tools, lenders can:
- build a detailed credit history of their customers and new prospects;
- flag any adverse trends and;
- identify any indicators of fraud.
Using data extraction methods, lenders can:
- assess new prospects;
- speed up onboarding and;
- strengthen continuous in life-monitoring.
The Growing Trend Towards Data Extraction
Huge opportunities are emerging in real-time data extraction; where a lender can extract accounting or banking data directly from their customers’ IT systems. This is rather than the more traditional ‘push’ system where clients manually send through the information.
Coming out of the pandemic, there is no doubt that investing in technology will be the driving force in building the business resilience of lenders. By investing, they will be able to move forward, reducing the chance of errors and oversight, enhance due diligence, speed up onboarding, and mitigate risk exposure.
Technology is fundamentally transforming the possibilities of receivables finance and how lenders operate. Close collaboration between the lender’s senior stakeholders and system providers helps produce the best results. It strikes a balance between standardised best practice and bespoke lender needs. It will be the lenders who invest in technology now who will secure future growth beyond the end of this pandemic.